Keywords: large-estate inheritance, real estate inheritance, estate division, winning case examples

In many Shenzhen families, parents have worked hard for decades and left behind two or even more properties. Once the parents pass away, multiple children often clash over how to divide the real estate: one wants a certain school-district apartment, another wants the unit near the metro, yet another argues for a larger share based on their contribution to the purchase price. How exactly should a large real estate estate be divided fairly?

According to Article 1127 of the Civil Code of the People's Republic of China, an estate is inherited in the following order: the first order consists of the spouse, children, and parents; the second order consists of siblings, paternal grandparents, and maternal grandparents. Once inheritance commences, the heirs in the first order inherit. Shares of the estate inherited by heirs in the same order shall generally be equal. Article 1156 provides that the division of an estate shall be conducive to production and living needs and shall not impair the utility of the estate.

In practice, the division of multiple inherited properties generally follows several approaches. First, physical division: if the properties are comparable in location and value, the heirs may simply agree that each property goes to a designated heir. Second, compensating differential value: the heir who takes a property pays the corresponding compensating amount to other heirs based on their entitled shares. Third, sale-and-proceeds division: sell all the properties collectively and distribute the proceeds among the heirs proportionally. Fourth, tenancy in common: postpone division and have the heirs hold the properties as tenants in common. In one winning large-estate real estate case our firm handled, the parents had left three properties upon death, and three siblings had disputed the allocation for years. We engaged an appraisal firm to determine the value of each property and ultimately resolved the years-long dispute in one step with a "one property per person plus differential compensation" arrangement.

It should be noted that value determination is the most common flashpoint in property division. In practice, heirs often disagree on the current value of a property—some want to use market price, others the original purchase price. In such cases, we recommend jointly appointing, or petitioning the court to appoint, a professional appraisal firm to conduct the valuation. In summary, the inheritance of multiple properties should follow the principles of being conducive to daily life and not impairing the utility of the properties, and should be handled through physical division, compensating differential value, or sale-and-proceeds division. We recommend that, under the guidance of an experienced inheritance lawyer, heirs first appraise the values and negotiate a plan, so as to avoid family bonds being broken in court.